LIC Housing Finance Q1 net profit up 7%

The company posted profit after tax of Rs 407.84 crore for Q1 FY17 compared to Rs 382.13 crore posted in same quarter last fiscal

LIC Housing Finance has posted a 6.7 per cent rise in its net profit for the quarter ended June 30, on the back of a strong growth in its net interest income (NII). The company posted a profit after tax of about Rs 408 crore, compared with nearly Rs 382 crore in the corresponding quarter last financial year.

Net interest margins (NIM) stood at 2.6 per cent for the quarter, against 2.4 per cent a year ago. Its NII was Rs 825 crore, registering a growth of 25 per cent over the corresponding period last year.

Sunita Sharma, managing director and chief executive officer, LIC Housing Finance, said, “We have registered a healthy disbursement growth rate, robust NII growth delivering higher net interest margins and maintained a very good asset quality. We are confident of building on  this and continue to remain positive on our future performance.”

During the quarter, the company made a provision of Rs 92 crore on account of aging of old project loan NPAs which had already been classified as NPAs according to norms.

Total gross non-performing assets (NPAs) for the  company including NPAs on project loans was 0.59 per cent as on June 30, 2016  as against 0.60 per cent as on June 30, 2015. Net NPAs stood at 0.28 per cent as on June 30, 2016 as against 0.33 per cent as on June 30, 2015.

The outstanding mortgage portfolio as on June 30, 2016 was Rs 1,27,437 crore as against Rs 1,10,411 crore on June 30, 2015, thus registering a growth of 15 per cent. The individual loan portfolio stood at Rs 1,23,681 crore as against Rs 1,07,704 crores, a growth of 15 per cent.